Last week, I reported that Nonprofit assessors like Charity Navigator and Guidestar will be moving to a model of judging effectiveness (as opposed to thriftiness). The title of my post drew some criticism. People far more knowledgeable than I am on these topics questioned my description of this as a “sea change”, and I certainly get their point. Sure, the intention to do a fair job of judging Nonprofits is sincere; but the task is daunting. As with many such efforts, we might well wind up with something that isn’t a sea change at all, but, rather, a modified version of what we have today that includes some info about mission effectiveness, but still boils down to a financial assessment.
Last week, GuideStar, Charity Navigator, and three other nonprofit assessment and reporting organizations made a huge announcement: the metrics that they track are about to change. Instead of scoring organizations on an “overhead bad!” scale, they will scrap the traditional metrics and replace them with ones that measure an organization’s effectiveness.